The Russell 2000 (^RUT) may be overshadowed by larger indexes, but it’s full of companies with the potential to deliver high returns. A select few have the right mix of innovation, market opportunity, and execution to outperform over time.
Finding these rising stars before they break out isn’t easy, which is why we started StockStory. That said, here are three Russell 2000 stocks that could be the next breakout winners.
Boot Barn (BOOT)
Market Cap: $4.94 billion
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE: BOOT) is a western-inspired apparel and footwear retailer.
Why Do We Like BOOT?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4.8% over the past two years
- Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 14.4%
Boot Barn is trading at $162.43 per share, or 19.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Vital Farms (VITL)
Market Cap: $686.7 million
With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.
Why Are We Fans of VITL?
- Stellar 25.3% growth in unit sales over the past two years demonstrates the high demand for its products
- Notable projected revenue growth of 19.1% for the next 12 months hints at market share gains
- Earnings per share grew by 288% annually over the last three years and trumped its peers
Vital Farms’s stock price of $15.49 implies a valuation ratio of 11.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
OSI Systems (OSIS)
Market Cap: $4.69 billion
With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ: OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.
Why Is OSIS a Top Pick?
- Impressive 14.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin expanded by 4.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $284.66 per share, OSI Systems trades at 24.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
